Climate Bonds Initiative has announced the launch of its revised Bioenergy Criteria, expanding the scope of eligible bioenergy activities to include electricity while addressing key socio-economic and environmental impacts from biodiversity, to growing energy demand, water use and food security. The updated framework provides investors, industry and policymakers with a science-based tool to scale sustainable investment across the bioenergy sector. The revised Criteria also move from a feedstock-agnostic approach to a more defined feedstock eligibility framework, reinforcing sustainability safeguards across biomass sourcing.
The revised Criteria also provide guidance and best practices to address and reduce methane emissions in the biogas and biomethane value chain.
Global demand for bioenergy continues to grow as countries seek scalable, low-carbon energy solutions. According to the International Energy Agency (IEA), global investment in bioenergy is expected to increase by 13% in 2025, reaching USD 16 billion, underscoring the sector’s expanding role in the global energy transition.
First launched in 2018, the Bioenergy Criteria have been updated to reflect advances in technology, biomass feedstock, methane emissions reduction measures and integration across power and transport systems, ensuring continued alignment with climate science and market best practice.
The Bioenergy Criteria set clear eligibility requirements for Certification under the Climate Bonds Standard, ensuring that bioenergy investments are consistent with long-term climate goals. Applicable across a range of financial instruments, including Use of Proceeds structures such as Green Bonds, the Criteria are designed to channel capital into a growing sector while maintaining strong environmental integrity and delivering measurable climate impact.
This updated version of the Bioenergy Criteria introduces four key enhancements:
- Expanded feedstock scope: The updated Criteria now allow a broader range of feedstocks, supporting the sector to tap into underutilised bioenergy potential such aswoody biomass and algae to meet growing global demand. The Criteria are no longer feedstock agnostic; for woody biomass, only waste woody biomass is eligible, defined as forest biomass derived from forest management or harvesting operations that is not classified as stemwood. This strengthens safeguards while supporting credible sector growth.
- Inclusion of electricity generation: Electricity production from biomass, previously excluded, is now covered under mitigation requirements, recognising bioenergy’s role in clean power generation.
- Emission trajectory assessment: Climate mitigation is now assessed based on the ambitious yet feasible trajectory of emissions intensity reductions, targeting close to zero emissions by 2050.
- Methane leakage reduction: The Criteria now embeds best practices across the biogas and biomethane value chain to abate process-related methane emissions leakage.
Paco Castro, Energy Analyst, Climate Bonds Initiative:
“By expanding the scope of the Criteria, we are providing sustainable finance market with wider, credible bioenergy investment opportunities. This update ensures that capital flowing into bioenergy delivers real climate benefits while supporting energy security, economic development and strong environmental outcomes.”
Dr. Bernabé Alonso Fariñas. Professor at University of Sevillle / Member of the Bioenergy Technical Working Group:
“Bioenergy has an important role to play in the global energy transition, but only when projects are developed and financed with strong sustainability standards in place. The updated Climate Bonds Bioenergy Criteria set a high bar for environmental integrity, giving investors confidence that Climate Bonds Certified bioenergy investments are aligned with long-term climate goals.”
The revised Bioenergy Criteria were developed under the Global Methane Hub (GMH) project, which embeds best practice measures to reduce methane emissions.
